Parliamentary committee questions impact of Tax Office move on Canberra businesses

The federal government's primary revenue collection agency is planning to shift its two Civic offices to a single Barton site in 2025, a move that will see more than 2000 staff leave the CBD.

The planned relocation last year sparked concerns from local business and Canberra's business chamber that the move would disrupt trade within the precinct.

A fit out plan for the agency's new site, stated that a local impact assessment "was not required" and that the Tax Office didn't "foresee any negative impacts on the local community - including local business".

On Tuesday, a parliamentary committee scrutinising the submission, questioned whether the agency engaged elected representatives, retailers or the business chamber before that conclusion was reached.

ATO Assistant Commissioner Brendon Fisher told the hearing the agency didn't meet the requirements to trigger a local impact assessment but that it did seek advice from commercial leasing advisors "around local impact".

"A leasing agent understood that both landlords [in Civic] would be looking to re-lease the buildings so there would be tenants moving in once we depart," he said.

"We also understand the Genge Street landlord will be undertaking some base building works, upgrading the buildings, so they will obviously bring some trade and construction into the area."

At the same time, he said that the move would "provide a stimulus" to Barton businesses.

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But Mr Smith said he found the assessment "dumbfounding".

"The idea that you take 2500 employees, obviously some working from home, out of quite possibly the most important retail precinct in Canberra, and suggest it will have little or no impact, I find that quite dumbfounding," he said.

Mr Smith told The Canberra Times there "didn't seem to be an evidence base to back that up".

"How do you back up a statement that it will have a little negative impact on the business environment in Civic, if you haven't actually talked to anyone to find that out," he said.

"They'd argue that someone else will come in to fill that vacancy, and I think ... will they or, and how long might that gap be?"

According to the Finance Department, which undertakes the assessments on behalf of government agencies, a local impact assessment should be done in certain cases and would look at whether "a potential move would adversely affect a local economy, transport and logistics infrastructure."

That assessment looks at a number of factors, including the kind of businesses that would be impacted and their potential revenue loss.

Last year, some businesses told The Canberra Times that Tax Office staff were among its main customers.

The ATO has leased two office spaces at Narellan Street and Genge Street since 2007.

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